- ETH Faces Selling Pressure: Ethereum is down 2%, hovering around the $2,000 mark, with large exchange outflows indicating a buy-the-dip attitude from crypto investors, but institutional ETF sellers continue to weigh on the market.
- Macro Factors Impacting ETH: Broader market instability, including the S&P 500’s decline and concerns over Trump’s tariff policies, is contributing to the bearish sentiment in the crypto market.
- Technical Indicators and Outlook: ETH is struggling to hold the $2,000 level, with RSI and MACD showing bearish momentum, but the oversold Stochastic Oscillator suggests a potential reversal if ETH breaks through key resistance levels.
Ethereum (ETH) is taking a hit, down about 2% on Monday, hovering near the crucial $2,000 mark. Despite this, there’s been an uptick in exchange net outflows. So, what’s going on? Well, it seems the sustained negative market mood is largely driven by crypto exchange-traded funds (ETFs) investors—those folks are trimming their holdings and adding pressure.
Ethereum’s Struggles and Investor Behavior
Ethereum saw a massive $1.8 billion in net outflows from exchanges last week, according to IntoTheBlock data. This is the highest amount since December 2022. Despite this decline, the data suggests a silver lining: many crypto investors are taking the drop as a chance to buy, seeing the current levels as a potential buying opportunity. It’s a bit like a “buy-the-dip” mentality at play.
But, here’s the catch: while crypto-native investors are scooping up ETH at these lower prices, institutional investors are pulling back. ETF players, in particular, are continuing to sell off. Last week alone, US spot ETH ETFs saw $94 million in outflows, signaling that the big institutional players are still looking to exit.
Macro Conditions and Their Impact
A big part of the selling pressure might be coming from the broader macroeconomic situation. Traditional stock markets have been struggling too. The S&P 500 has dropped over 450 points since hitting its all-time high in mid-February, and a lot of that has to do with the risk-off sentiment sparked by President Trump’s tariff decisions and the broader instability in international trade. With many of the same traditional stock investors now also dabbling in the crypto space through ETFs, this could be weighing on Ethereum’s price as well.
Crypto ETFs in Trouble
It’s not just Ethereum feeling the heat—crypto ETFs are under pressure too. According to CoinShares, ETFs have seen $4.75 billion in losses over the past month, showing a broader sense of unease among institutional investors.
Ethereum Price Outlook: Is There Hope?
Ethereum has faced $117.96 million in futures liquidations in the past 24 hours, with $81.01 million in long positions and $36.94 million in short positions. That’s a lot of shakeout in the market. ETH is struggling to hold that $2,000 level after closing below the $2,200 critical level last week. If the bearish momentum continues, the next big support zone for Ethereum is at $1,500.
Technical Indicators: Could ETH Rebound?
Looking at the charts, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are both sitting below neutral, signaling that bearish momentum is strong. However, there’s a glimmer of hope: the Stochastic Oscillator (Stoch) is in the oversold zone, suggesting that a reversal might be coming soon. If Ethereum can pull off a strong move above $2,200 and break through some key trendline resistance, it could reverse the negative momentum.
However, if Ethereum closes the week below $1,500, that would invalidate any hopeful bullish scenario, and the price could drop toward the next psychological level below $1,000.
